# Hyundai Engineering & Construction (000720.KO)

Canonical: https://gigainvestors.com/s/000720.KO

Analysis as of: 2026-10-16T07:36:21.779Z. Financial observations: FY2000–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 91,100.00 per share; close as of 2026-10-15.

Estimated value: low KRW 69,713.80 per share, central KRW 76,601.21 per share, high KRW 85,769.82 per share. Buy at or below the central value KRW 76,601.21 per share. Valuation as of 2026-10-16T07:36:21.779Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.86×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: -0.04×

- FY2025: 0.02×

- LTM to Jun 2026: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.0%

- ROIC, second-lowest year: 8.9%

- Typical minus recent gross margin: 3.3 pp

- Typical gross margin (annual median): 9.0%

- Recent gross margin (lower of latest and 3-year median): 5.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.7%

- ROIC including acquisitions, ten-year median: 7.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.6%

- FY2017: 14.8%

- FY2018: 14.9%

- FY2019: 15.0%

- FY2020: 12.1%

- FY2021: 14.0%

- FY2022: 9.3%

- FY2023: 11.0%

- FY2024: -18.5%

- FY2025: 8.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 1.62T

- Net income, five-year total: KRW 1.56T

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -2.7 pp

- Working capital / revenue, change between three-year averages: -19.5 pp

- Working capital / revenue, final three-year average: 12.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.08×

- FY2022: 1.02×

- FY2023: 0.97×

- FY2024: 1.01×

- FY2025: 1.11×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 14.9% vs 8.9%

- Per-share earnings: 3110.93 to 3319.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: KRW 1.13T

- Cumulative retained earnings: KRW 1.78T

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.9%

- Per-share value change: KRW 208.07

- Per-share value, starting three-year median: KRW 3K

- Per-share value, ending three-year median: KRW 3K

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 67B

- Cumulative net income, 10 years: KRW 3.16T

- ROIC, first three-year median: 14.9%

- ROIC, last three-year median: 8.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 3K

- FY2017: KRW 2K

- FY2018: KRW 3K

- FY2019: KRW 4K

- FY2020: KRW 1K

- FY2021: KRW 4K

- FY2022: KRW 4K

- FY2023: KRW 5K

- FY2024: KRW -2K

- FY2025: KRW 3K

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 4.0%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -2.01×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.0%

- FY2017: -1.7%

- FY2018: 0.7%

- FY2019: -0.4%

- FY2020: -9.0%

- FY2021: -3.1%

- FY2022: 2.6%

- FY2023: 5.3%

- FY2024: -0.2%

- FY2025: 4.0%

## Holders

## Price story

Down 45% since Feb 2026 · sales -6.6%

Story as of 2026-10-16T10:00:07.280Z; price observation 2026-10-15.

Price needs cash profits to grow 3.7% a year for ten years

### Sales · FY2025–2026

sales -6.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 16.89T 

- FY2018: KRW 16.73T 

- FY2019: KRW 17.28T 

- FY2020: KRW 16.97T 

- FY2021: KRW 18.07T 

- FY2022: KRW 21.24T 

- FY2023: KRW 29.65T 

- FY2024: KRW 32.67T 

- FY2025: KRW 31.06T 

- FY2026: KRW 29.01T 

### Gross margin · FY2025

gross margin 6.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 9.8% 

- FY2017: 10.5% 

- FY2018: 9.9% 

- FY2019: 10.0% 

- FY2020: 8.2% 

- FY2021: 9.9% 

- FY2022: 7.1% 

- FY2023: 5.7% 

- FY2025: 6.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are KRW 31.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2025: revenue 31062912000000; grossProfit 1980283000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000720.KO: Hyundai Engineering & Construction Co.,Ltd. engages in the civil engineering and construction business in Middle Asia, Asia, Africa, and internationally. It operates through Building/Housing, Civil Engineering, Plant/Power, and Others segments. The company constructs roads and bridges, tunnels and railways, and maritime and port, apartment, luxury homes, and large complex as well as develops industrial facilities, mixed-use development and hotel, hospitals and offices, and special buildings. It is also involved in energy infrastructure construction, including large nuclear power plants, oil and gas, oil refining and petrochemicals, industrial plants, transmission lines and substations, renewable energy, and nuclear decommissioning. In addition, the company engages in steel structure manufacturing and installation; agricultural management and livestock industry; management of resort condominium; real estate development and supply; equipment maintenance; electricity production; construction of commercial building; business facility management service; and renting heavy equipment. The company was founded in 1947 and is headquartered in Seoul, South Korea.

### Why customers stay

It earns 13% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2023: grossProfit / revenue = 5.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2024: grossProfit / revenue = -0.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2025: grossProfit / revenue = 6.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); 10-year return on capital observations [[2016,0.17577342109275884],[2017,0.14784977679189643],[2018,0.1491151330683638],[2019,0.14983643343406244],[2020,0.1209220764226501],[2021,0.13966258331898115],[2022,0.09294195876579893],[2023,0.10990338557282947],[2024,-0.18497575723633242],[2025,0.08858012668025655]]; median 0.13029232987081563. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2016: growth capex 0; upkeep 187241000000; owner earnings 494010000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2017: growth capex 0; upkeep 49808000000; owner earnings 345250000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2018: growth capex 0; upkeep 202398000000; owner earnings 351326000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2019: growth capex 0; upkeep 111667000000; owner earnings 465289800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2020: growth capex 0; upkeep 73865000000; owner earnings 203329400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2021: growth capex 0; upkeep 118177000000; owner earnings 440693200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2022: growth capex 0; upkeep 153553000000; owner earnings 416115202013.26886. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2023: growth capex 41842000000; upkeep 196114000000; owner earnings 520160594973.71924. Growth capex / owner earnings = 0.08044054164101769.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); FY2025: growth capex 0; upkeep 116666000000; owner earnings 415241538813.5254. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); Dividend observations: [[2016,108403000000],[2017,108605000000],[2018,106910000000],[2019,107758000000],[2020,132059000000],[2021,131842000000],[2022,114960000000],[2023,94755000000],[2024,94882000000],[2025,68853000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 34.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000720.KO SharesStats.PercentInsiders = 34.929 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:21.779Z); Ten-year compound average after fade. Initial solved rate 0.040589179214875065. Price 91100; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 41,450.00 per share

- 2016-11: KRW 39,350.00 per share

- 2016-12: KRW 42,800.00 per share

- 2017-01: KRW 41,550.00 per share

- 2017-02: KRW 47,800.00 per share

- 2017-03: KRW 49,500.00 per share

- 2017-04: KRW 48,550.00 per share

- 2017-05: KRW 48,700.00 per share

- 2017-06: KRW 46,050.00 per share

- 2017-07: KRW 45,300.00 per share

- 2017-08: KRW 40,650.00 per share

- 2017-09: KRW 38,350.00 per share

- 2017-10: KRW 37,850.00 per share

- 2017-11: KRW 35,050.00 per share

- 2017-12: KRW 36,300.00 per share

- 2018-01: KRW 42,900.00 per share

- 2018-02: KRW 38,500.00 per share

- 2018-03: KRW 43,700.00 per share

- 2018-04: KRW 63,600.00 per share

- 2018-05: KRW 73,800.00 per share

- 2018-06: KRW 57,500.00 per share

- 2018-07: KRW 58,500.00 per share

- 2018-08: KRW 60,000.00 per share

- 2018-09: KRW 67,500.00 per share

- 2018-10: KRW 45,750.00 per share

- 2018-11: KRW 55,000.00 per share

- 2018-12: KRW 54,600.00 per share

- 2019-01: KRW 62,200.00 per share

- 2019-02: KRW 57,200.00 per share

- 2019-03: KRW 53,400.00 per share

- 2019-04: KRW 52,500.00 per share

- 2019-05: KRW 51,400.00 per share

- 2019-06: KRW 53,600.00 per share

- 2019-07: KRW 43,050.00 per share

- 2019-08: KRW 41,350.00 per share

- 2019-09: KRW 46,300.00 per share

- 2019-10: KRW 42,950.00 per share

- 2019-11: KRW 40,950.00 per share

- 2019-12: KRW 42,300.00 per share

- 2020-01: KRW 38,200.00 per share

- 2020-02: KRW 34,700.00 per share

- 2020-03: KRW 27,450.00 per share

- 2020-04: KRW 35,050.00 per share

- 2020-05: KRW 34,200.00 per share

- 2020-06: KRW 33,050.00 per share

- 2020-07: KRW 34,300.00 per share

- 2020-08: KRW 32,250.00 per share

- 2020-09: KRW 30,450.00 per share

- 2020-10: KRW 30,650.00 per share

- 2020-11: KRW 33,600.00 per share

- 2020-12: KRW 37,450.00 per share

- 2021-01: KRW 40,250.00 per share

- 2021-02: KRW 39,800.00 per share

- 2021-03: KRW 44,050.00 per share

- 2021-04: KRW 50,400.00 per share

- 2021-05: KRW 57,400.00 per share

- 2021-06: KRW 58,300.00 per share

- 2021-07: KRW 54,700.00 per share

- 2021-08: KRW 55,500.00 per share

- 2021-09: KRW 51,400.00 per share

- 2021-10: KRW 50,300.00 per share

- 2021-11: KRW 44,200.00 per share

- 2021-12: KRW 44,450.00 per share

- 2022-01: KRW 42,200.00 per share

- 2022-02: KRW 43,300.00 per share

- 2022-03: KRW 47,900.00 per share

- 2022-04: KRW 44,550.00 per share

- 2022-05: KRW 43,300.00 per share

- 2022-06: KRW 41,350.00 per share

- 2022-07: KRW 42,150.00 per share

- 2022-08: KRW 48,200.00 per share

- 2022-09: KRW 37,500.00 per share

- 2022-10: KRW 34,900.00 per share

- 2022-11: KRW 41,000.00 per share

- 2022-12: KRW 34,900.00 per share

- 2023-01: KRW 38,050.00 per share

- 2023-02: KRW 36,400.00 per share

- 2023-03: KRW 36,450.00 per share

- 2023-04: KRW 41,000.00 per share

- 2023-05: KRW 38,300.00 per share

- 2023-06: KRW 38,100.00 per share

- 2023-07: KRW 37,400.00 per share

- 2023-08: KRW 35,500.00 per share

- 2023-09: KRW 36,250.00 per share

- 2023-10: KRW 33,400.00 per share

- 2023-11: KRW 35,850.00 per share

- 2023-12: KRW 34,900.00 per share

- 2024-01: KRW 34,650.00 per share

- 2024-02: KRW 34,700.00 per share

- 2024-03: KRW 33,000.00 per share

- 2024-04: KRW 35,450.00 per share

- 2024-05: KRW 33,200.00 per share

- 2024-06: KRW 32,050.00 per share

- 2024-07: KRW 33,450.00 per share

- 2024-08: KRW 32,000.00 per share

- 2024-09: KRW 30,500.00 per share

- 2024-10: KRW 27,900.00 per share

- 2024-11: KRW 27,450.00 per share

- 2024-12: KRW 25,400.00 per share

- 2025-01: KRW 31,050.00 per share

- 2025-02: KRW 33,500.00 per share

- 2025-03: KRW 35,950.00 per share

- 2025-04: KRW 41,600.00 per share

- 2025-05: KRW 63,800.00 per share

- 2025-06: KRW 78,500.00 per share

- 2025-07: KRW 67,500.00 per share

- 2025-08: KRW 62,100.00 per share

- 2025-09: KRW 54,400.00 per share

- 2025-10: KRW 70,300.00 per share

- 2025-11: KRW 67,000.00 per share

- 2025-12: KRW 70,100.00 per share

- 2026-01: KRW 102,600.00 per share

- 2026-02: KRW 164,700.00 per share

- 2026-03: KRW 142,100.00 per share

- 2026-04: KRW 161,800.00 per share

- 2026-05: KRW 147,000.00 per share

- 2026-06: KRW 114,200.00 per share

- 2026-07: KRW 94,600.00 per share

- 2026-08: KRW 123,300.00 per share

- 2026-09: KRW 117,500.00 per share

- 2026-10: KRW 98,200.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 40,893.41 per share, central KRW 43,359.94 per share, high KRW 46,643.41 per share

- FY2017: low KRW 63,669.75 per share, central KRW 68,335.54 per share, high KRW 74,546.70 per share

- FY2018: low KRW 70,041.35 per share, central KRW 74,791.83 per share, high KRW 81,115.73 per share

- FY2019: low KRW 73,839.61 per share, central KRW 78,813.85 per share, high KRW 85,435.62 per share

- FY2020: low KRW 81,852.28 per share, central KRW 86,675.17 per share, high KRW 93,095.47 per share

- FY2021: low KRW 81,692.81 per share, central KRW 86,826.80 per share, high KRW 93,661.22 per share

- FY2022: low KRW 76,858.37 per share, central KRW 82,836.88 per share, high KRW 90,795.56 per share

- FY2023: low KRW 85,554.21 per share, central KRW 93,341.85 per share, high KRW 103,708.86 per share

- FY2024: low KRW 90,861.94 per share, central KRW 98,548.49 per share, high KRW 108,780.93 per share

- FY2025: low KRW 80,033.72 per share, central KRW 87,338.17 per share, high KRW 97,061.95 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:01.401Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations